Core Insights - Xiaohongshu's valuation has surged to $26 billion, driven by a recent transaction through GSR Ventures, marking a significant increase from the previous valuation of $20 billion [1] - The platform's valuation has surpassed its historical peak during the COVID-19 pandemic, providing strong momentum for its anticipated IPO this year [1][5] Valuation Details - Xiaohongshu accounts for 91% of GSR IV fund's assets, with a net asset value of approximately $2.44 billion as of March 31, where Xiaohongshu's stake is valued at $2.22 billion [1] - The valuation is based on private transactions, which often have a wide range due to the nature of secondary market negotiations [4] Market Context - Xiaohongshu has gained attention as a potential alternative to TikTok amid the latter's regulatory challenges in the U.S., leading to increased interest from American users [2] - The Chinese government's support for private enterprises and relaxed regulations in the tech sector have created new investment opportunities for platforms like Xiaohongshu [2] Investor Landscape - Xiaohongshu's investor base includes prominent firms such as GGV Capital, ZhenFund, Tiantu Capital, and GSR Ventures, with limited partners comprising major global pension funds and university endowments [7] - GSR Ventures, managing $3.7 billion in assets, has a history of investing in notable companies like Didi Chuxing and Horizon Robotics [7]

Core Viewpoint - The article emphasizes the challenges and complexities of working in investment banking, particularly for newcomers, and introduces a comprehensive learning package designed to aid their understanding and skill development in the industry [1][2]. Summary by Sections Learning Package Content - The learning package includes a printed material titled "Investment Banking Growth Notes," an online course on assessing the feasibility of corporate listings, and a customized notebook [4][46]. Investment Banking Growth Notes - The "Investment Banking Growth Notes" consists of 312 pages, over 120,000 words, and 9 chapters, covering career planning, industry insights, essential skills such as research, due diligence, finance, valuation, and the current focus areas in IPO processes [5][9]. Chapters Overview - Chapters 1 and 2 provide foundational knowledge about investment banking, including department divisions, regulatory frameworks, essential skills, project classifications, daily tasks, personnel sources, and future industry trends [9][12]. - Chapters 3 to 7, which constitute about 62% of the content, detail the professional skills necessary for investment banking, including industry research, client acquisition techniques, due diligence, financial thinking, and company valuation [12][19]. Industry Research Skills - Chapter 3 outlines essential industry research skills, including quantitative thinking, macro data analysis, industry segmentation, due diligence guidelines, financial metrics analysis, and practical research techniques [12][16]. Client Acquisition and Due Diligence - Chapter 4 shares insights from a seasoned professional on acquiring IPO business, discussing market conditions, channel development, and preparation for client meetings [19][23]. - Chapter 5 focuses on the due diligence process, detailing information collection, verification, and analysis, along with 12 specific operational steps [28][30]. Financial Analysis and Valuation - Chapter 6 emphasizes understanding a company's true financial status through balance sheets, income statements, and cash flow statements, including key financial indicators and underlying logic for analysis [30][32]. - Chapter 7 discusses valuation methods, including relative and absolute valuation techniques, and offers practical advice for companies to enhance their valuation [33][34]. IPO Process Insights - Chapters 8 and 9 focus on IPO projects, addressing common regulatory concerns and outlining the responsibilities of various departments during the IPO process [35][36][40]. Practical Application - The content is designed to be practical and applicable, drawing from the experiences of investment banking professionals and corporate executives, making it accessible for those interested in deepening their knowledge in the field [44].

Core Viewpoint - Geely Auto has submitted a privatization proposal for Zeekr, aiming to acquire the remaining 34.4% of shares to make Zeekr a wholly-owned subsidiary and delist it from the NYSE, with a proposed purchase price of $25.66 per share, representing a 13.6% premium over the last closing price [3][4]. Summary by Sections Privatization Proposal - Geely currently holds approximately 65.7% of Zeekr's equity and plans to buy out the remaining shares [3]. - The acquisition price of $25.66 per share is a 13.6% premium compared to Zeekr's closing price of $22.6 on May 6 [3][4]. - Shareholders can choose to accept cash or stock exchange, with the stock exchange option offering 12.3 shares of Geely for each Zeekr ADS [3]. Reasons for Privatization - Zeekr's valuation is significantly lower than other new energy vehicle companies, with a P/S ratio of 0.7 compared to 0.9 for the automotive business and 1.5 for competitors like Xpeng [4][6]. - The market perceives Zeekr as undervalued, especially given its initial strong sales performance and the expectation of a P/S ratio of at least 1 for its automotive business [6][7]. Current Challenges - Zeekr's valuation has declined, with projected sales for 2025 being around 500,000 units, leading to an estimated valuation of 0.4-0.5 times [7][8]. - The company has been heavily reliant on Geely for support, leading to a high debt-to-asset ratio of 1.31, one of the highest in the industry [8][9]. - Internal coordination issues may arise post-merger with Lynk & Co, as both brands have overlapping strategies and product lines [9][10]. Sales Performance - Zeekr's sales have been declining, with the Zeekr 001 model dropping from 14,000 units per month to 3,000 units, and the Zeekr 007 also experiencing a significant drop [12][13]. - The competitive landscape has intensified, with rivals like Xiaomi and Xpeng gaining market share, further impacting Zeekr's sales [12][13]. Financial Implications - Zeekr's cash flow is low at approximately $9 billion, compared to competitors like Xpeng and NIO, which have significantly higher cash reserves [15]. - The total acquisition cost of $2.24 billion could strain Geely's cash flow, which was $43.6 billion at the end of 2024, potentially requiring new financing methods [16].

Core Viewpoint - The article discusses how Warren Buffett simplifies the process of valuing companies through two main strategies: selecting easily understandable businesses and ensuring a margin of safety in investments [3][7][8]. Group 1: Valuation Strategies - Buffett emphasizes the importance of choosing companies that are easy to value, which includes businesses that are simple and clear, have stable cash flows, and possess business models that are not easily altered by time [8][10]. - The concept of "margin of safety" is crucial; investors should only buy stocks when their calculated value significantly exceeds the market price to protect against unforeseen risks [7][10]. Group 2: Investment Philosophy - The article highlights that selecting stocks is fundamentally about selecting businesses, and understanding the intrinsic value of a company is essential before making an investment [4][5]. - Buffett's approach is to avoid complex and unpredictable businesses, focusing instead on those that are straightforward and within his circle of competence [9][15]. - The ultimate goal of stock market investment is to make money, not to challenge oneself with difficult analyses [12][14].